Embraer

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Embraer S.A.
Type Sociedade Anônima
Traded as BM&F BovespaEMBR3
NYSEERJ
Industry Aerospace, Defense
Founded 1969
Headquarters São José dos Campos, Brazil
Key people Hermann Wever (interim chairman)[1]
Frederico Fleury Curado (CEO)
Products Aircraft, aircraft components, mission systems for air and ground operation
Revenue Increase US$ 5.7 billion (2013)[2]
Net income Increase US$ 329.1 million (2013)
Employees 18,003[3]
Subsidiaries Neiva
OGMA
Atech
Bradar
Website www.embraer.com

Embraer S.A. (Portuguese pronunciation: [ẽbɾaˈɛɾ]) is a Brazilian aerospace conglomerate that produces commercial, military, executive and agricultural aircraft[4] and provides aeronautical services.[5][6] The headquarters is in São José dos Campos, São Paulo State.[7]

Embraer is a member of the Air Transport Action Group (ATAG). Its CEO, Frederico Curado, is the 2012 recipient of the Tony Jannus Award, given annually for distinguished contributions to commercial aviation.[8] In 2013, the company competed with Canadian rival Bombardier for the title of the third largest airplane maker after Airbus and Boeing.[9]

History[edit]

Seeking a domestic aircraft manufacturer, the Brazilian government made several investments in this area during the 1940s[10][11] and '50s,[10] but it was not until 1969 that Empresa Brasileira de Aeronáutica (Embraer) was created as a government-owned corporation.[6]

The company's first product was a turboprop transport, the Embraer EMB 110 Bandeirante.[citation needed]

Early growth[edit]

The Brazilian Government contributed to Embraer's early growth by providing license production contracts.[12] The company increased its product line; it sold solely to the domestic market until 1975.

While military aircraft made up the majority of Embraer's products during the 1970s,[citation needed] by 1985 a regional airliner had debuted, the Embraer EMB 120 Brasilia.[13] Aimed at the export market, this plane marked the first of Embraer's highly successful small airliners.[5]

License-built Pipers[edit]

In 1974 the company started to produce Piper Aircraft light planes under license.[14] Piper first put together knock-down kits in their US factory for Embraer to assemble and market in Brazil & Latin America.[citation needed] By 1978 most of the parts and components were being sourced locally.[14] Between 1974 and 2000 nearly 2500 license-built Pipers were produced by Embraer.[14]

Privatization[edit]

Born from a Brazilian government plan and having been state-run from the beginning,[10] Embraer began a privatization process alongside many other state-controlled companies during the government of Itamar Franco.[15]

This privatization effort saw Embraer sold on December 7, 1994,[6][16] and helped it avoid a looming bankruptcy.[10] The company continued to win government contracts.[citation needed]

The Brazilian government retains interest through possession of golden shares, which allow it veto power.[17]

Initial public offerings[edit]

In 2000, Embraer made simultaneous initial public offerings on the NYSE and BM&F Bovespa stock exchanges.[5] As of 2008, its NYSE-traded shares were American Depositary Receipts representing 4 BM&F Bovespa shares.[18]

As of 2008 ownership was: Bozano Group 11.10%, Previ (a Brazilian pension fund) 16.40%, Sistel 7.40%, Dassault Aviation 2.1%, EADS 2.1%, Thales 2.1%, Safran 1.1%, Government of Brazil 0.3%, the remainder being publicly traded.[19]

Product line expansion: military, regional & executive[edit]

In the mid-1990s the company pursued a product line more focused on small commercial planes than the military aircraft that had previously made up the majority of its manufacturing.[10] Larger regional airliners with 70–110 seats and smaller business jets soon followed.[5] Today the company manufactures for both defense and commerce.[5][6]

Military transport[edit]

On April 19, 2007, Embraer announced it was considering the production of a twin-jet military transport, the Embraer KC-390. Work actually began in May 2009 with funding from the Brazilian Air Force.[20] Correios, the Brazilian postal service, has shown interest in buying this aircraft, in lieu of using commercial freight service for mail transport.[21][22] Using much of the technology developed for the Embraer 190, the C-390 would carry up to 23 tons of cargo,[23] and aims at replacing Cold War-era cargo aircraft.[24]

While firm orders for this yet-to-be-produced hauler do not exist,[20] Argentina has asked for six examples and several South American nations have also expressed interest.[25][26]

Government subsidy controversy[edit]

Brazil and Canada engaged in an international, adjudicated trade dispute over government subsidies to domestic plane-makers in the late 1990s and early 2000s. The World Trade Organization decided Brazil ran an illegal subsidy program, Proex, benefiting its national aviation industry from at least 1999–2000, and that Canada illegally subsidized its indigenous regional airliner industry, comprising Bombardier Aerospace.

Production bases and facilities[edit]

The company's headquarters and a production base are in São José dos Campos, São Paulo, Brazil. It also has production bases in the State of São Paulo at Botucatu, Eugênio de Melo (a district of São José dos Campos) and Gavião Peixoto. It may have other production bases as well[citation needed]. The company has offices in Beijing, Fort Lauderdale (US), Paris, Singapore, and Washington DC (US).[27]

Non-Brazilian main facilities[edit]

Subsidiaries[edit]

  • EAMS – Embraer Aircraft Maintenance Services Inc. (Nashville, TN, US) – maintenance services site.
  • OGMA – Indústria Aeronáutica de Portugal (Alverca do Ribatejo, Portugal) – aircraft component maintenance, repair and manufacturing, plus aircraft maintenance services.
  • Embraer Aircraft Holding, Inc. – Its US headquarters are near Fort Lauderdale, Florida, in a facility founded in 1979. Its external relations office is in Washington, DC.[29]

Joint ventures[edit]

Aircraft products[edit]

Commercial[edit]

Lufthansa CityLine Embraer 195LR
Air Canada Express Embraer 175

Military[edit]

EMB-145 AEW&C of Hellenic Air Force

Corporate[edit]

Legacy 600

Agriculture[edit]

Utility[edit]

Experimental[edit]

Future[edit]

In October 2010, Embraer suggested plans to develop very-long-range business jets, entering a sector currently dominated by Gulfstream, Bombardier, and Dassault.[31] In October 2013 they unveiled the Lineage 1000E.[32]

In May 2011, Embraer announced that it was considering building a larger airliner than the E-jets, with five-abreast seating,[33] but, eventually, choose to develop the second generation of its E-Jet family, as E-jets E2.[34]

In Feb 2014, India's newest airline, Air Costa, announced an order for 50 E-jets E2 aircraft worth $2.94 billion at list price. The order has an option for another 50 planes.[35]

Licensed-version aircraft[edit]

Military[edit]

General aviation[edit]

Commercial aircraft deliveries[edit]

Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Number of Deliveries 4 32 60 96 160 161 131 101 148 141 130 169 204 244 246[36] 204[37] 205[38] 209

The numbers include military versions of commercial aircraft.

Total delivered-backlog-options as of June 30, 2007: 862-53-131 145 Family, 256-399-719 170/190 Family

Competition in the Regional jet market[edit]

Orders and Deliveries by year
ARJ21 CRJ700 E-Jet MRJ-70 Superjet 100 An-148 year
Deliveries(Orders) (55) 503(619) 582(877) (65) (122) 1(50) 2009
Deliveries(Orders) (87) 576(649) 671(916) (15) (137) 5(72) 2010
Deliveries(Orders) (189) 593(654) 770(1018) (15) 3(168) (180) 2011
Deliveries(Orders) 2012
Deliveries(Orders) (252) 636(725) 966(1212) (165) 23(229) 2013
ARJ21 CRJ700 E-Jet MRJ-70 Superjet 100 An-148 year
World Airliners Regionals 2009[39] World Airliners Regionals 2010[40] World Airliners Regionals 2011[41] World Airliners Regionals 2012[42]
World Airliners Regionals 2013[43]

References[edit]

  1. ^ "Botelho resigns as chairman of Embraer". Flightglobal. Retrieved 15 January 2012. 
  2. ^ Embraer. "Global 2000 List". Forbes. Retrieved 2013-03-21. 
  3. ^ Numbers (press release), BR: Embraer .
  4. ^ "Aircraft". BR: Embraer. Retrieved May 12, 2014. 
  5. ^ a b c d e Monks & Minow 2008, p. 357.
  6. ^ a b c d "Timeline", Historical Center (official site), BR: Embraer .
  7. ^ IR Contact, BR: Embraer, retrieved March 18, 2014, "Address: Av. Brigadeiro Faria Lima, 2170. Putim. 12 227-901 São José dos Campos, SP. Brasil." 
  8. ^ Gadsen, Sandra J (March 15, 2012). "Frederico Curado of Embraer named Jannus Award winner". The Tampa Bay Times. Retrieved 2012-03-15. 
  9. ^ "Kansas Airplane Maker Beechcraft Sues U.S. Air Force". Forbes. March 21, 2013. .
  10. ^ a b c d e Territorial Reviews, Madrid, ES: OECD, 2007, p. 157 , 264 pp.
  11. ^ Krishnan, Rishikesha T (October 1, 2003), "Where core competence soars", Businessline (Chennai): 1 
  12. ^ "History", Historical Center (official site), BR: Embraer .
  13. ^ The Embraer EMB120 Brasilia, Air liners .
  14. ^ a b c "EMB 710 Carioca", Aircraft History, BR: Embraer History Center .
  15. ^ Eckhouse, John (January 12, 1991), "Brazil on Road Peddling State-Owned Enterprises", The San Francisco Chronicle (final ed.) (San Francisco, CA, US): B.1 .
  16. ^ "Os efeitos da privatização sobre o desempenho econômico e financeiro das empresas privatizadas" [The effects of privatisation on the economical & financial performance of the privatised companies], Scielo (in Portuguese) (BR) .
  17. ^ Monks & Minow 2008, p. 356.
  18. ^ Monks & Minow 2008, p. 358.
  19. ^ Monks & Minow 2008, p. 359.
  20. ^ a b "Portugal interested in Brazilian military cargo plane", Monitoring European (BBC), February 1, 2010 .
  21. ^ "Costa confirma projeto dos Correios com cargueiro C-390", Monitor Mercantil, August 28, 2007, retrieved October 15, 2007 .
  22. ^ "Brazilian postal service may order Embraer C-390 freighters", Flight global, September 4, 2007, retrieved October 15, 2007 .
  23. ^ "Defense Systems". Embraer. Retrieved 2013-03-21. 
  24. ^ Embraer has military transport aircraft under study (PDF), Embraer .
  25. ^ Argentina to buy 6 military transport jets from Brazil's Embraer, Madrid: EFE News Service, October 30, 2010 .
  26. ^ "Defense Watch", Defense Daily (Potomac) 247 (47), September 7, 2010 .
  27. ^ "Global presence". Embraer. 2012. Retrieved 24 Dec 2013. 
  28. ^ Trautvetter, Chad. "Approval Imminent for Embraer Legacy 450/500 U.S. Plant" AINonline, 26 August 2014. Accessed 4 September 2014.
  29. ^ Facilities, Embraer, September 11, 2012, "Embraer Aircraft Holding, Inc. 276 SW 34th Street Fort Lauderdale, FL 33315 USA […] Embraer Aircraft Holding, Inc. 1700 Pennsylvania Ave. NW Suite 200 USA Washington, DC 20008" 
  30. ^ Aviation Week & Space Technology: 60. 14 October 2013. 
  31. ^ "Embraer mulls over new types", Flight global, 21/10/2010  .
  32. ^ "Embraer Executive Jets Introduces the Lineage 1000E". BR: Embraer. Retrieved 17 December 2013. 
  33. ^ "Correction: Embraer eyes possible ‘five-abreast aircraft’". Flight global. 2011-05-06. Retrieved 2011-05-08. 
  34. ^ "Embraer Launches "E2", the Second Generation of E-Jets", Aviation pros .
  35. ^ "India’s Air Costa places 2.94 bn order for 50 E-Jets E2 Embraer aircraft", The Economic Times (The India Times) .
  36. ^ "Embraer Closes Out 2010 With 246 Jets Delivered". PR Newswire. Traders Huddle. 2011 Jan 18. Retrieved 2013-03-21. 
  37. ^ Embraer delivers 105 commercial & 99 executive jets in 2011 (PDF) (press release), BR: Embraer .
  38. ^ Embraer Delivers 106 Commercial and 99 Executive Jets In 2012 (PDF) (press release), BR: Embraer .
  39. ^ "Regionals", World air liners, Flight global, 2009 .
  40. ^ World air liners regional diversity, Flight global, 2010 .
  41. ^ "Regionals", World air liners, Flight global, 2011 .
  42. ^ World air liner census, Fligh global, 2012 .
  43. ^ "World Ariliners" (PDF), In focus (Cloud front) .

Bibliography[edit]

External links[edit]

Further reading[edit]